Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Rane Holdings's annualized net income for the quarter that ended in Mar. 2024 was ₹1,256 Mil. Rane Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2024 was ₹8,328 Mil. Therefore, Rane Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 15.08%.
The historical rank and industry rank for Rane Holdings's Return-on-Tangible-Equity or its related term are showing as below:
NSE:RANEHOLDIN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.09 Med: 13.75 Max: 23.12
Current: 15.89
During the past 13 years, Rane Holdings's highest Return-on-Tangible-Equity was 23.12%. The lowest was -7.09%. And the median was 13.75%.
NSE:RANEHOLDIN's Return-on-Tangible-Equity is ranked better than 72.07% of 1246
companies
in the Vehicles & Parts industry
Industry Median: 8.605
vs NSE:RANEHOLDIN: 15.89
Rane Holdings Return-on-Tangible-Equity Historical Data
The historical data trend for Rane Holdings's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Rane Holdings's Return-on-Tangible-Equity
For the Auto Parts subindustry, Rane Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rane Holdings's Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Rane Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rane Holdings's Return-on-Tangible-Equity falls into.
Rane Holdings Return-on-Tangible-Equity Calculation
Rane Holdings's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Rane Holdings (NSE:RANEHOLDIN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Rane Holdings Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Rane Holdings's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Rane Holdings (NSE:RANEHOLDIN) Business Description
Rane Holdings Ltd is engaged in the manufacturing and marketing of automotive components for the transportation industry. It also provides consultancy and other services to the Group. The group supplies to various sections of the automobile industry including passenger vehicles, commercial vehicles, farm tractors, two-wheelers, three-wheelers, railways, and stationary engines. Steering and suspension systems, Friction material components, Valve train components, Occupant safety systems, Aluminium diecast components, and others are the products offered by the company. It derives revenue from India and the Rest of the world, of which key revenue is generated with in India.
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